State Regulators Expand Use of NMLS to Include Additional Non-Depository Industries

Washington DC — The Conference of State Bank Supervisors (CSBS) and its subsidiary – the State Regulatory Registry LLC (SRR) – announced today the expanded use of NMLS by five state banking agencies for the licensing and supervision of non-depository financial services industries beyond the mortgage industry.

“We are building upon the success NMLS has had in bringing greater consistency, transparency, and supervision to the oversight of the mortgage industry,” said David Cotney, Commissioner of Banks at the Massachusetts Division of Banks and Chairman of SRR. “Now, with updates to the System, state regulators have the ability to not only enhance oversight of the mortgage industry, but a broad range of financial services industries that provide important access to credit to American families.”

In addition to the five state agencies currently managing other license authorities on NMLS, six more agencies plan to expand their use of the System this year with an additional nine expected to do so in 2013. To view the list of state agencies expanding their use of NMLS, visit the NMLS website here.

The Conference of State Bank Supervisors (CSBS) is the nationwide organization of banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands. State banking regulators supervise approximately 5,400 state‐chartered financial institutions. Further, the majority of state banking departments also regulates a variety of non-bank financial services providers, including mortgage lenders. For more than a century, CSBS has given state supervisors a national forum to coordinate supervision of their regulated entities and to develop regulatory policy. CSBS also provides training to state banking and financial regulators and represents its members before Congress and the federal financial regulatory agencies.

The Nationwide Mortgage Licensing System and Registry (NMLS) is a web-based system that allows state-licensed financial services companies and individuals to complete a single application in order to apply for, amend, update and renew a license securely online for any license authority that a participating state agency manages on the system. NMLS brings greater uniformity, transparency, and supervision to non-depository financial services industry and strengthens ability of state regulators to monitor their regulated industries and protect their citizens. The NMLS Federal Registry is used by the Consumer Financial Protection Bureau (CFPB) for implementing the registration of mortgage loan originators as required under federal rules.

The State Regulatory Registry LLC (SRR) operates as a non-profit subsidiary of the Conference of State Bank Supervisors (CSBS), responsible for developing and managing NMLS on behalf of participating state financial services regulatory agencies.